Question 1

Liquidity refers to

Select one:

a. a positive net cash flow to cover unexpected expenses.

b. the amount of insurance coverage a person has.

c. a person's inability to pay his or her debt or other obligations.

d. the ease of converting a financial resource into cash without a loss in value.

Question 2

Balance sheet assets should be valued at

Select one:

a. original purchase price.

b. fair market value.

c. insured value.

d. replacement value.

Question 3

You have a salary of $30 000, an RPP deduction of $2000, and union dues of $800. The federal tax rate is 15.5 percent. What federal tax do you owe?

Select one:

a. $2216

b. $1416

c. $4340

d. $4216

Question 4

Tax credits are used to reduce tax

Select one:

a. after total taxes payable are calculated.

b. when calculating total income.

c. when calculating taxable income.

d. before you subtract all deductions.

Question 5

Even if you have no tax to pay it is beneficial to file a tax return because

Select one:

a. it is required by law, if you are over 18.

b. you can make use of non-refundable tax credits during the year.

c. you may be eligible for a tax-free refundable GST/HST credit.

d. you may be eligible for Employment Insurance benefits.